— THE GRESB INFRASTRUCTURE FUND ASSESSMENT —
The Investor-driven Global ESG Benchmark for the Infrastructure Sector
The Infrastructure Fund Assessment assesses the ESG performance of infrastructure funds.
Institutional investors are demanding information about the ESG management and investment processes undertaken by fund managers. The Infrastructure Fund Assessment addresses this need through a consistent, globally applicable reporting and benchmarking framework.
What is the GRESB Infrastructure Fund Assessment?
The GRESB Infrastructure Fund Assessment provides the basis for systematic reporting, objective scoring and peer benchmarking of ESG management and performance of infrastructure funds around the world. The process is unique in the ESG space and leads to deep data insights for investors and infrastructure fund managers.
The Fund Assessment consists of a Management Component, called the Management Component – Infrastructure Fund, this is aligned with the Management Component in the Asset Assessment. The Component addresses ESG management and investment processes and is structured into five aspects:
- Risk Management
- Stakeholder Engagement
Additionally, the fund’s underlying assets may participate in the complimentary Infrastructure Asset Assessment, with the scores of the fund’s underlying assets informing the fund’s Performance Component Score. While the participation of underlying assets is not required, funds participating with at least 25% of assets will receive an overall GRESB score and be allocated to a corresponding peer group.
The data is self-reported by Assessment participants between April 1 and July 1 each year and subjected to a multi-layer validation process after which it is scored and benchmarked. The result is high-quality data that investors and participants can use in their investment and decision-making processes.
What type of funds does the GRESB Infrastructure Fund Assessment cover?
The GRESB Infrastructure Fund Assessment is designed to assess funds across a wide range of sectors, including energy generation, energy transmission, water resource management, transportation and social infrastructure.
Common examples of infrastructure funds participating in the GRESB Infrastructure Fund Assessment include:
• A sector-focused fund with investments in toll roads
• A geographic-focused fund with investments in a specific region, such as North America or Oceania
• A segregated account that is globally diversified offering exposure to several sectors
GRESB Infrastructure Investor Members
The Assessment provides a communication platform to improve engagement with investors and enables participants to report validated ESG performance information in a format and language that serves their needs.
Benefits of Participating
GRESB has established a robust data validation process to underpin the accuracy and reliability of its output. It is based on a three-layer data quality control process designed to ensure submission of high quality information. The approach to validation was developed by PwC and involves third party verification by GBCI.
2. Objective Scoring
The GRESB Scoring Model is based on an automated system, which uses a technology platform designed for GRESB by a third party that specializes in data analysis software development. The scoring is completed without manual intervention after data input.
3. Peer Benchmarking
Peer comparisons that take into account country, regional, sectoral and investment type variations provide a powerful lens through which to benchmark performance. Each participant is assigned to a peer group, based on the entity’s legal structure (listed/private), sector and geographical location.
The Assessment Results are launched in October. The 12 indicators in the Fund Assessment contribute to an overall Fund Score. If the fund participates with at least 25% of its assets in the complimentary GRESB Infrastructure Asset Assessment, the fund will also receive a GRESB Score and be allocated to a corresponding peer group.
In addition to the overall scores, participants can access powerful analytical tools and services that provide in-depth analysis of sustainability performance, enable detailed peer group comparisons and highlight industry best practices.
First year participants can submit the Assessment without providing GRESB Investor Members with the ability to request access to their results. This is referred to as a “Grace Period”.